That shift would export the SBT burden slightly to out-of-state companies, said June Summers Haas, a partner at Lansing law firm Honigman Miller Schwartz and Cohn and state revenue commissioner from 1999 to 2002.

Overall, the plan would result is a net tax cut for 77 percent of SBT payers, Rising said. The remaining businesses either wouldn't benefit or would pay more.

"Those are likely from the services, retail trade, insurance, real estate, consulting sector and some out-of-state businesses, whereas manufacturing and research and development are going to be clearly benefit," said Haas, noting that the shift would accomplish many of the goals of a sales tax on services.

"In general, it's a very thoughtful proposal because the number of business entities that will have to pay more tax is very limited," she said.